Policies and development plans for closer agricultural co-operation with Taiwan are being drawn up by officials in South China's Guangdong Province and East China's Fujian Province.

Cheng Ganrong, an official with Guangdong's agricultural department, told China Daily yesterday the province will set up experimental zones for agricultural schemes in the cities of Foshan in the Pearl River Delta and Zhanjiang, in the west of the province.

He said it was part of the 15 measures outlined by the Communist Party of China during the Cross-Straits Economic and Trade Forum held last week in Beijing.

The official said the province would announce favourable policies to attract more Taiwan business people to invest in its agricultural sector.

Guangdong is considering setting up a zone for Taiwan farmers' investment in the city of Jiangmen, where many Taiwan farmers have already set up projects.

Cheng said that an association would be launched this year to facilitate cross-Straits agricultural exchange and communications.

"The association is expected to serve as a platform for agricultural communication and co-operation between Guangdong and Taiwan and for the introduction of agricultural professionals and management mechanisms from Taiwan," he said.

Taiwan-funded agricultural enterprises have helped the province greatly boost its agricultural development, said Cheng.

New technologies and facilities have invigorated and modernized the agricultural sector in the province, he added.

Official statistics indicate that Taiwan business people have set up more than 1,000 agricultural enterprises in the province and their investments have surpassed US$1 billion since the early 1990s.

Popular locations for their agricultural investments are the Pearl River Delta Region cities as well as Zhanjiang, Maoming and Zhaoqing in the west of the province.

Most are involved in the development of orchards, floral cultivation and poultry farms.

At a forum held recently in Foshan, Li Ronggen, vice-governor of Guangdong, said that the province would like to strengthen co-operation with Taiwan in the processing of agricultural products, in agricultural production, marketing and sales, international trade, and new technologies.

The vice-governor said that the Guangdong-Taiwan agricultural co-operation is an important element in the province's 11th Five-Year Plan (2006-10).

According to Zhuang Xiujuan, a professor with South China University of Agriculture, the Guangdong-Taiwan agricultural co-operation will be good for both sides.

Guangdong boasts a similar climate, an excellent investment environment and huge market, and adequate supplies of land and labourers, she said.

The expert suggested that the agricultural sector of the province could learn more about agricultural management and marketing from Taiwan business people, in addition to their planting know-how.

In Fujian, the provincial government is making efforts to expand the cross-Straits experimental zones for agricultural co-operation in the cities of Fuzhou and Zhangzhou to the whole province this year.

The province's contracted investment from Taiwan in agricultural projects is expected to reach US$120 million this year.

Wang Jianwen, vice-director with the administrative committee of the development park for Taiwan farmers in Zhangpu of Fujian Province, said: "Thanks to the central government's support to our park, we are trying to build it into a new platform for Taiwan farmers developing in the mainland."

Twelve Taiwan-based companies have already entered the park, which has a planned final area of 667 hectares, to begin their operations, with a total investment of US$15 million.

Lu Zhuang-chuan, a man from Taiwan now operating his farm in a similar environment, Fuzhou Development Park for Taiwanese Farmers, said: "There is no problem on the distribution of my products, but the output in my farms is still short for demand."

Lu has decided to rent 15 more hectares of farmland this year in addition to his present 15 hectares to make up for losses caused by the two strong typhoons that hit Fujian last year.

"The cost in labour and transportation here is only about one-third of that in Taiwan, so our products are very competitive," said Lu.

According to statistics, Fujian had approved 1,783 agricultural projects invested in by Taiwan business people by the end of 2005.

Editor: Yan